I'm torn...on one hand once the Big Money interests involved, the most powerful forces in the country will be behind legalization. On the other hand,once they get involved they're sure to fark it up in the interest of squeezing every last cent they can out it.

This is dangerous because any big money pot business may attract federal regulators. Remember what happened in California when the IRS enforced the "no business expense deductions" rule. There is a ~30% tax on gross receipts for illegal drug businesses, instead of a tax on profits for legal businesses. At the next level up, investing in illegal drug businesses could be taken as conspiracy to violate drug laws.

I looked into doing something similar a little while ago. Is High Times based in Colorado? I started thinking about out of state money coming in and interstate commerce. Seems like if it raises any real money and if that money crosses state lines the fund will be a Fed magnet.

js34603:I'm torn...on one hand once the Big Money interests involved, the most powerful forces in the country will be behind legalization. On the other hand, once they get involved they're sure to fark it up in the interest of squeezing every last cent they can out it.

It it saves tens of thousands of people from ending up in prison for no good reason, I think I'm willing to let it slide.

Harvey Manfrenjensenjen:js34603: I'm torn...on one hand once the Big Money interests involved, the most powerful forces in the country will be behind legalization. On the other hand, once they get involved they're sure to fark it up in the interest of squeezing every last cent they can out it.

It it saves tens of thousands of people from ending up in prison for no good reason, I think I'm willing to let it slide.

This. Freedom trumps monetary cost. Plus is you are really resistant to avoiding the taxes and Big Money interests you can grow your own. Just like home brewing, it's fun, but sometimes I don't want to wait 30 days for a beer.

ZAZ:This is dangerous because any big money pot business may attract federal regulators. [tax point]

There is risk in these new markets, especially the risk of a federal crackdown. But the risk of buying into a fund like this might be less than, say, the risk of working directly with a retail establishment in a state that has licensed them. Probably only accredited investors can buy into the fund. An investor who could put up the minimum investment would remain several steps removed from the activity of questionable legality. Generally, even if a company is found to have committed a crime, its shareholders are not automatically guilty of the same crime merely by virtue of being shareholders. And there may be a good faith tax position that would allow reporting proceeds of a state-licensed entity as proceeds of a lawful business, shifting the burden to federal regulators to challenge that reporting.

With so much money in the offing, some investors may conclude the risk is not insurmountable.

/not tax or legal advice, do not rely//no financial interest in this fund